owner salary

[Jessiegirl10]

With a sole proprietor LLC, is all the revenue taxed as income or just the portion I pay myself as owner withdrawal each month? I will be in a deficit situation at year end with $70K in revenue but $96K as break even.

[Anonymous_ · Accepted solution]

You are taxed on the net income (profit) that the LLC generates.

Your draw is largely irrelevant for income tax purposes.